Top MFs: UTI Flexi Cap fund

Objective

UTI Flexi Cap Fund Direct-Growth is a Multi Cap mutual fund scheme from UTI Mutual Fund.

Fund Highlights

This fund has been in existence for 9 yrs, having been launched on 01/01/2013.

UTI Flexi Cap Fund has ₹25,541 Crores worth of assets under management (AUM) as on 31/12/2021 and is medium-sized fund of its category.

The fund has an expense ratio of 0.92%, which is higher than what most other Multi Cap funds charge.

Exit load for more than 10% of investments 1% will be charged if redeemed within 1 year.

Minimum investment required is Rs 5000 and minimum additional investment is Rs 1000. Minimum SIP investment is Rs 500.

It is benchmarked against NIFTY 500 Total Return Index.

Returns

UTI Flexi Cap Fund Direct-Growth returns of last 1-year are 23.76%. Since launch, it has delivered 16.99% average annual returns.

The fund has doubled the money invested in it every 2 yrs.

Its trailing returns over different time periods are: 42.73% (1yr), 25.46% (3yr), 20.73% (5yr) and 13.48% (since launch). Whereas, Category returns for the same time duration are: 37.8% (1yr), 18.07% (3yr) and 15.9% (5yr).

Sector and stock wise returns

The fund has the majority of its money invested in Financial, Technology, Healthcare, Services, Chemicals sectors. It has taken less exposure in Financial, Technology sectors compared to other funds in the category.

The fund's top 5 holdings are in Larsen & Toubro Infotech Ltd., Bajaj Finance Ltd., HDFC Bank Ltd., Infosys Ltd., Kotak Mahindra Bank Ltd.

Asset Allocation & Portfolio Composition

While the top 10 equity holdings constitute around 41.98% of the assets, the top 3 sectors constitute around 54.86% of the assets.

The fund largely follows a Growth oriented style of investing and invests across market capitalisations - around 63.99% in giant & large cap companies, 32.41% in mid cap and 3.6% in small cap companies.

Tax Implications

1. Gains are taxed at a rate of 15% (Short-term Capital Gain Tax - STCG) if units are redeemed within 1 year of investment.

2. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.

3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long-term Capital Gain Tax - LTCG).

4. For Dividend Distribution Tax, the dividend income from this fund will get added to the income of an investor and taxed according to his/her respective tax slabs.

5. Also, for dividend income in excess of Rs 5,000 in a financial year; the fund house shall deduct a TDS of 10% on such income.

Fund Manager

The UTI Flexi Cap Fund is managed by Ajay Tyagi (Since Jan 11, 2016).

Expert Comment

This is a flexi-cap fund where the fund management team has complete freedom to invest in companies of different sizes, depending on where it expects maximum gains. This versatility makes flexi-cap funds most suitable for equity fund investors, as the job of stock selection is left completely to the fund manager, which is the very idea of investing in a mutual fund. The scheme's ability to deliver returns consistently is higher than most funds of its category. Its ability to control losses in a falling market is above average.